New Delhi: In a significant move to boost renewable energy projects in India, the state-owned Indian Renewable Energy Development Agency (IREDA) has entered into an initial agreement with Bank of Maharashtra (BoM) on Monday. The collaboration is aimed at promoting and facilitating co-lending and loan syndication for a wide range of renewable energy projects across the nation.
In a statement, IREDA announced the signing of a Memorandum of Understanding (MoU) with Bank of Maharashtra on September 18, highlighting several services that are included in the agreement. These services include co-lending and co-origination support for all renewable energy projects, the management of trust and retention accounts for IREDA borrowers, the facilitation of loan syndication and underwriting, and a commitment to establishing stable fixed interest rates for a period of 3-4 years for IREDA borrowings.
As part of the agreement, Bank of Maharashtra will have the opportunity to invest in the bonds issued by IREDA in agreement with the provided terms and conditions of the offering.
The MoU was signed at IREDA’s Business Centre by Bharat Singh Rajput, the General Manager, Technical Services, at IREDA, and Rajesh Singh who is the General Manager, Retail & MSME Credit, at Bank of Maharashtra.
IREDA’s move to collaborate with public sector banks and financial institutions through MoUs aims to address the substantial funding requirements of the renewable energy sector, including emerging technologies such as green hydrogen and offshore wind. This initiative is intended to support big-ticket-size projects with co-lending arrangements.
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